Semen Gresik to invest Rp22 trillion to support MP3EI

Semen Gresik to invest Rp22 trillion to support MP3EI

Mustafa Abubakar. (ANTARA/Yudi Mahatma)

Jakarta (ANTARA) - State cement maker PT Semen Gresik Tbk will spend up to Rp22 trillion on building a number of cement plants until 2014 to support a master plan for acceleration and expansion of Indonesia`s economic development (MP3EI), a minister said.

"In the near future Semen Gresik Grup will build a cement plant in Kalimantan at a cost of Rp3.5 trillion," State Enterprises Minister Mustafa Abubakar said on the sidelines of a seminar here on Thursday.

The cement plant in Kalimantan would have a production capacity of 2.5 million tons per year, he said.

By developing more cement plants, cement supplies to all parts of the country could be ensured to support infrastructure development, he said.

"In addition to the existing production capacity of 1.5 million tons in Padang, West Sumatra, Semen Gresik Grup still has a chance of building another plant with a production capacity of 1-1.5 million tons there," he said.

In Aceh, opportunities were also open for Semen Gresik Grup to build a new cement plant, while the company also could use Papua as a center of bulk cement, he said.

"Cement supplies particularly to the eastern parts of the country are a must. The government will definitely support any step taken by state-owned companies to expand their businesses there," he said.

He said Semen Gresik Grup as part of state firms was assigned to develop investment in six regions --Sumatra, Java, Kalimatan, Sulawesi, Bali-Nusa Tenggara and Papua-Maluku-- as main economic corridors.

The MP3EI is a new theme in the development of regional economy which focuses on the effort to give added value to natural resources and avoid concentration of economic activities in certain areas.

The MP3EI designates six regions as main economic corridors. The corridors refer to six economic development highways which are mostly located along coastlines to connect centers of economic growth on the five major islands of Java, Sumatra, Kalimantan, Sulawesi and Papua.

Sumatra will be designated as a center for agriculture and energy, Java for industries and services, Kalimantan for mining and energy, Sulawesi and North Maluku for agriculture and fisheries. Meanwhile, Bali and East and West Nusa Tenggara will focus on tourism and supporting national food self-sufficiency, Papua and Maluku on natural and human resources.

Besides Semen Gresik, other large state firms including oil and gas company Pertamina, telecommunication operator PT Telkom and mining company PT Aneka Tambang are also assigned to develop the MP3EI until 2014.

Pertamina reportedly plans to invest Rp189.356 trillion, PT Telkom Rp152.950 trillion and PT Aneka Tambang Rp39.762 trillion in the project.